Krishival lends $2.6M to ice cream unit Melt 'N' Mellow for cold chain push

What's the deal? Krishival FoodsDealroom has a profile for this one. Try Dealroom → has approved a ₹25 crore ($2.6 million) loan to its subsidiary Melt 'N' Mellow FoodsDealroom has a profile for this one. Try Dealroom → to expand the cold chain infrastructure of its ice cream division. The board also sanctioned a ₹35 crore corporate guarantee for the subsidiary's credit facilities.

What's the money for? The loan will fund 10,000 additional deep freezers to strengthen Melt 'N' Mellow's cold chain. KrishivalDealroom has a profile for this one. Try Dealroom → will draw on proceeds from its recent rights issue to provide the debt financing.

Why now? The move replaces a previously proposed equity acquisition of the subsidiary that the board floated on August 26, 2026. Instead of buying more shares, Krishival is deploying debt for operational expansion, with the option to convert the loan into equity in future tranches. A separate ₹10 crore loan for working capital was also approved, subject to member consent.

By the numbers: Melt 'N' Mellow's turnover nearly doubled to ₹90.22 crore in FY26 from ₹49.94 crore in FY25. Revenue was ₹37.28 crore in FY24, the year Krishival acquired the business. The fresh capital aims to support that scaling operation.

What to watch: The transaction is classified as a related party deal, since promoter director Aparna Bangar holds shares and serves as a director at Melt 'N' Mellow. The loan carries a 12-month completion window.

The signal: Krishival's shift from equity to debt shows a parent company backing a fast-growing unit while keeping ownership flexible. As Melt 'N' Mellow's revenue doubles, the bet is that distribution capacity — the deep freezers — is the constraint worth funding next.

Image credit: Tetra Pak